Coalition sees ‘more to do’ on reining in NDIS as Jane Hume flags spending growth cuts
A Coalition government could slash spending growth on the nation’s disability insurance scheme to a quarter of current levels with the shadow finance minister Jane Hume saying there was more to be done to rein it in.
The NDIS has been one of the key pressure points on the Federal Budget and Labor is aiming to bring its growth back to 8 per cent annually over the next few years.
It’s expected to grow by about 10 per cent this year – significantly lower than previously forecast – after eligibility criteria and the rules for what participants’ money can be spent on were tightened.
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By continuing you agree to our Terms and Privacy Policy.But Senator Hume said on Sunday the Coalition would operate on a general principle that government spending should not outpace economic growth.
The shadow finance minister said the NDIS had “run out of control”.
“It’s been brought back to around 8 per cent, it actually looks like it’s going to be much higher than that this year, but it’s been brought under control somewhat,” she told Sky News.
“We think that there’s more that can be done.
“We would hope that when Labor goes into opposition, that they would work with us to try and rein in that profligate spending … those runaway programs that have gone out of control under this government.”
Pushed on whether the Coalition had a target in mind for NDIS growth levels, she said, “The most important thing … is in the long term that all government spending doesn’t grow faster than the economy itself.”
The nation’s economy is forecast to grow by 2-3 per cent each year over the next four years.
Treasurer Jim Chalmers said the suggestion of massively curtailing growth in the NDIS was a scary proposition.
“That means huge cuts to the NDIS, and that would send a shiver up the spine of a lot of people who rely on the program now,” he told Sky.
“We are way too late in the parliamentary term for these characters to still be making it up as they go along.”
The NDIS is forecast to cost almost $50.8 billion in 2025-26, the third largest Commonwealth outlay behind GST payments to the States and aged pensions.
Originally published on The West Australian
